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debtor in possession
(redirected from Debtor-in-Possession)

   Also found in: Financial, Wikipedia 0.01 sec.

debtor in possession n. in bankruptcy proceedings when a debtor has filed for the right to submit a plan for reorganization or refinancing under Chapter 11, and the debtor is allowed to continue to manage his/her/its business without an appointed trustee, that debtor is called a "debtor in possession." (See: bankruptcy)



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Receives Commitments for $75 Million Debtor-in-Possession Financing; Agrees to Restructuring Support Agreement with Largest Secured Creditor; Maintains Business-as-Usual Operations RESTON, Va.
The debtor is the bankrupt person or entity, and the creditors are those to whom the debtor owes money; Depending on a number of factors, the debtor in Chapter 11 may act as a debtor-in-possession and continue to run the business after the bankruptcy is filed, or a trustee may be appointed to oversee the entity through the bankruptcy proceedings.
Michigan-based Visteon filed under chapter 11 of the bankruptcy code in federal court in Delaware, saying that Ford had agreed to providing funding through the reorganization process with so-called debtor-in-possession financing.
 
 
 
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